Air-India estimates that its net profits will be $149 million during the terminal year of the 10th five-year plan period in 2006-07. The airline expects to report a net profit of a low $4 million in 2001-02. Working Group on Civil Aviation, an evaluating body within Air-India, told the Planning Commission that A-I expects to remain profitable during the entire Tenth Plan period. The experts within the group put the expected net profit in 2002-03 to be $10.5 million. This figure is expected to scale up to $67 million the following year.
America West plans to further boost its Las Vegas capacity due to returning demand. The carrier in February and April will resume pre-Sept. 11 flights between Las Vegas and New York Kennedy, Boston, Dallas/Ft. Worth and Denver. "We plan to continue to add flights based on customer demand and work toward a full resumption of service," said Scott Kirby, executive VP-sales and marketing. Specifically, the carrier will provide two additional roundtrip flights between Las Vegas and JFK. Boston, DFW and Denver will each receive one additional roundtrip flight.
FAA yesterday issued an emergency rule that will allow general aviation flying to resume under new security at three Maryland airports outside Washington. The three are College Park, Potomac and Washington Executive/Hyde, which have been closed since Sept. 11. Pilots must undergo a "security evaluation" including fingerprinting and background checks. Pilots also must obtain a confidential ID code that they will use in filing a required flight plan and must receive a special transponder code before each flight and remain in radio contact.
United and the Machinists union will begin negotiations tomorrow in Chicago under the pressure of a Feb. 20 strike deadline if the government does not intervene. The 13,000 mechanics and related employees voted by a 68% margin to reject contract terms recommended by a Presidential Emergency Board, with Scotty Ford, lead negotiator, saying the PEB recommendations "fell short of what we felt we could achieve in direct negotiations." Industry sources said the vote was almost a foregone conclusion given the history of airline labor negotiations.
Firth Ratings yesterday removed Continental's debt and preferred equity security from "Ratings Watch Negative," while affirming its current ratings. Fitch made the move "to reflect the latest signs of stabilization in Continental's cash flow position that have begun to appear over the last several weeks." Fitch said its unit revenue has shown "steady improvements" but has kept costs in check.
Thales ATM said the U.K.'s National Air Traffic Services awarded it a contract to supply four microwave landing systems at London Heathrow airport with options for other airports across the nation. The New MLS infrastructure will be co-located with existing instrument landing systems, which will be "adapted to enable easy and efficient MLS integration." British Airways Airbus aircraft with onboard MLS avionics will be among the first to benefit from the new capabilities, which will be certified for Category 3 landings.
Allegiant Air signed a two-year deal with Harrah's Hotel and Casino to provide MD-87 charter flights to Laughlin, Nev., from cities across the U.S. The flights will operate six days per week, with passengers staying as guests at Harrah in Laughlin. The carrier previously provided charters for Harrah's on an ad hoc basis. "Harrah's was looking for the operating performance capabilities provided by the MD-87 and we were able to acquire the appropriate aircraft for the mission," said Chairman Maurice Gallagher.
Honeywell said yesterday it was selected by Airservices Australia to provide avionics and ground equipment to demonstrate Automatic Dependent Surveillance-Broadcast for commercial and general aviation use in a region near Bundaberg, Queensland, Australia. The company said that ADS-B enables radar-like air traffic services at a lower cost than a conventional radar system and that Australia has many areas with limited or no air traffic surveillance.
DOT's ramp-up of the TSA without including airport representatives in the policy-crafting process is dismaying, Steven Van Beek, senior VP-policy and strategic development Airports Council International, said last week. ACI has faced a closed door at TSA as it seeks to participate in some of the 60 or 70 Go-teams deciding the future of aviation security.
Federal Communications Commission could issue as early today a ruling that aviation interests fear would authorize use of ultra-wideband devices that interfere with safety of flight. The Air Transport Association said the devices could interfere with GPS transmissions and other services that operate in restricted spectrum bands. The FCC plans to address the issue today, and proponents of UWB have not been required to demonstrate its safety, according to Carol Hallett, ATA president.
American Hub Profile Miami Origin and Destinations, Segment Summary and Top Nonstop Markets Origination and Destination Data 12 Months 12 Months Ended June Ended June 2001 1997 Miami Total (All Carriers) O&D Passengers 8,937,810 10,368,270 -13.8% Passengers Per 12,244 14,203
CEOs of the oneworld alliance member carriers are due to meet next week in Santiago, Chile, to discuss the implications of the renewed failure to get regulatory approval for the American /British Airways alliance. Iberia Chairman and CEO Xabier de Irala told The DAILY that his airline plans to stick to oneworld but would have clear alternatives if the alliance were to dismantle. At this point, Irala said he does not have any indications that AA and BA might split up, but he considers the conditions imposed on the two for regulatory clearance to be "discriminating."
NTSB investigators working the American Flight 587 accident are looking closely at whether certification standards push airframes enough, and some FAA officials are concerned about the ramifications of a board position backing changes based on conclusions about the crash.
TRAFFIC DATA FOR JANUARY 2002 RPMsChange ASMs Change In From In From Load Airline Millions 1/01 Millions 1/01 Factor Express 1 56.9 +58.3% 123.8 +61.7% 46.0% Midwest Express 138.3 -4.8% 247.1 -13.6% 57.7% Skyway 11.4 +22.3% 27.9 +16.4% 40.9%
Vanguard Airlines expects to report a fourth quarter net loss of about $2-3 million, including federal grants, but warned that its future is bleak if it does not receive additional loan guarantees from the government. Vanguard yesterday released unaudited financial results for the year and quarter ended Dec. 31 required for its loan application, and noted that it has yet to calculate its final numbers. The quarterly loss will be lower than last year's $11 million net loss, including $5 million in federal aid.
British Airways has decided to make significant cuts in both its short- and long-haul network and slash 5,800 more jobs as part of massive changes for the carrier. BA plans to simplify its fare structure, boost Internet sales and rearrange its fleet. The measures are the result of the in-house "future size and shape" study revealed yesterday.
Singapore Airlines' stake in Air New Zealand has plunged from 34% to a mere 4% following a loss of NZ$361.11 million (US$154.9million) in the investment last year. SIA's loss was due to a massive drop in the price of ANZ's share caused by the collapse of ANZ's acquisition, Ansett Australia, in early September. With a reduction in its stake and sharp fall in share price from NZ$1.51 in April 2000, when it acquired its initial 25% stake, to NZ$0.27 on Jan. 21, SIA lost one of its two seats on the ANZ board when CEO Cheong Choong Kong stepped down.
Gulf Air will introduce a code share operation with Qantas between Sydney and Singapore for passengers traveling to the Gulf region and the Middle East, subject to government approval. It will take effect in April and involve a Qantas connection to Sydney for Gulf Air's Melbourne passengers.
American and British Airways yesterday told DOT they have concluded that prospects for U.S.-U.K. open skies and gaining antitrust immunity approval for their alliance are "remote" in a motion dismiss their application. Answers are due tomorrow to DOT's show cause order in the U.S.-U.K. alliance case that includes United and BMI British Midland, which yesterday pressed DOT to approve their application for full antitrust immunity and code sharing. Both the Justice Department and DOT have found that United-BMI "poses no risks to competition," United said.
Air New Zealand named Ralph Norris as the company's next managing director and CEO. Norris is a currently director of ANZ Limited and was formerly managing director and CEO of the ASB Bank Limited and Head of International Financial Services with the Commonwealth Bank of Australia. He starts Monday as CEO of the company.
Sonic Foundry has developed a system that uses available technology to link biometrics with existing forms of identification -- such as passports or company badges -- to create what the company says is a viable alternative to smart cards and similar forms of advanced identification. Unified Security View (USV) is tied to standard hardware, such as cameras and fingerprint readers, and captures pictures, voices, fingerprints, and other biometric data from subjects. The biometric data is then linked to existing data files, such as passport information.
British Airways is expected to announce results of its "future size and shape" study today, ahead of the airline's annual investor day. The carrier is likely to cut more jobs and routes with a focus on its London Gatwick operation. A significant part of services could be transferred to regional subsidiaries or franchise partners, such as GB Airways, that are able to operate on BA's unprofitable routes with lower costs. The company faces increasing competition in Gatwick where EasyJet is expanding its presence.
Boeing Commercial said yesterday that Alenia Aeronautica would work on structural materials technology for the proposed Sonic Cruiser. Jeff Luckey, director of supplier management for the program said that Alenia "has proven itself a reliable partner to Boeing on projects in the past." Sergio Braccini, head of commercial aircraft business for Alenia, said the program "will be a great opportunity for technological and industrial growth of the Italian aeronautics system."
Despite the collapse of Swissair and its Belgian subsidiary Sabena, the members of the Qualiflyer Group will continue to offer a joint frequent flyer program, Crossair said this week. The alliance currently includes Swissair Group, Crossair (soon to become Swiss Air Lines), DAT Belgian Airlines, LOT Polish Airlines, Portugalia Airlines, TAP Air Portugal and the Volare group of Italy. For Qualiflyer passengers, "this means that all the miles mustered so far remain valid," said Crossair.
